Pernod Ricard Releases Leadership Succession Plan, As Full Year Sales Rise 8%August 30, 2012
Alexandre Ricard has been appointed deputy CEO and chief operating officer of Pernod Ricard, paving the way for the 40-year-old executive to assume leadership of the company upon current CEO Pierre Pringuet’s retirement in 2015. Ricard, who had been managing director, Pernod Ricard distribution network, is the nephew of former Pernod Ricard chairman Patrick Ricard, who died suddenly on August 17. He has also filled his uncle’s spot on the company’s board. Danièle Ricard has been named to replace her brother, Patrick, as chairman, while Pringuet has added the role of vice chairman to his chief executive duties. With his promotion, Alexandre Ricard is now slated to become chairman and CEO of Pernod Ricard in January 2015, when both Pringuet and Danièle Ricard will retire.
Meanwhile, Pernod posted its best set of results in four years for the 12 months through June, with organic sales rising 8% to €8.22 billion ($10.3b) and profit from recurring operations up 9% to €2.1 billion ($2.6b). Encouragingly for the drinks giant, its U.S. sales growth accelerated to 5% for the year (from 2% a year earlier), driven by Jameson, as well as the improvement of Absolut’s performance in the second half of the fiscal year.
Across Pernod’s global business, Asia Pacific (+15%), Eastern Europe (+16%) and Brazil (+13%) also contributed strong growth, while Western Europe declined. By brand, Absolut (+3%), Chivas Regal (+7%), Jameson (+15%), Malibu (+6%), Beefeater (+6%), Martell (+10%), The Glenlivet (+15%) and Royal Salute (+20%) all showed positive momentum, while Havana Club (-2%), Ballantine’s (-1%), Kahlúa (-1%) and Ricard (-3%) slipped. Pernod’s wine business saw volume rise 2% during the year, with Campo Viejo (+9%), Graffigna (+3%) and Brancott Estate (+5%) gaining ground as Jacob’s Creek fell 1%. The company said it expected “continued good growth in the U.S. and strong growth in emerging markets” in the year ahead.
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